On Tuesday, Boeing announced that Dennis Muilenburg will replace Jim McNerney as Chief Executive Officer, effective in July of this year. Muilenburg joined Boeing in 1985 as an intern and throughout his tenure has held top positions in both the Defense Space & Security division and Combat Systems division.
Under mostly sunny skies and cool weather at Le Bourget, the Paris Air Show captured the aerospace/defense industry’s attention this past week. Order announcements came in much greater than pre-show predictions at 1,017 commitment orders and 206 option orders summing to ~$69.0 billion new business won.
In recent years, the General Services Administration (“GSA”) has released larger and broader awards to leverage contract bundling as a cost cutting measure. The effort to avoid duplicative or redundant contracts and programs within the Federal Government has shifted focus on the GSA as a primary procurement avenue.
Colt Defense, a West Hartford, Connecticut based firearm manufacturer, appears to be headed into a showdown with its bondholders after missing a $10.9 million payment last month. Colt’s modern sports rifles and handguns sales fell 30.0% in 2014 and its cash on hand diminished to a balance of $11.9 million as of May 22nd.
As a continuation of the red-hot M&A activity that’s been occurring in the defense microwave / radio frequency (“RF”) sector, Ultra Electronics announced the acquisition of the Electronics Products Division (“EPD”) of Kratos Defense & Security Solutions for $265 million.
On Tuesday, the U.S. Air Force announced that SpaceX received certification for military space launch, making it only the second provider approved to launch military payloads into orbit. The Air Force’s certification of SpaceX’s Falcon 9 rocket effectively ends the service’s decade long sole reliance on United Launch Alliance (“ULA”) for military launch services.
The annual Special Operations Forces Industry Conference (“SOFIC”) kicked off this past week in Tampa, FL bringing together military, government, and industry stakeholders alike. This year, defense giants such as Boeing, General Dynamics, and Polaris showed off a range of new ultralight vehicle offerings in response to the U.S. Army’s pre-solicitation for new ultralight combat vehicles (“ULCV”) that can take advantage of tactical lift.
A strong driver of “middle market” M&A over the past five years has been (and we expect to continue to be) sellers’ presence within priority, well-funded customer and capability markets. Between 2001 and 2009, Federal spending on contractor services grew at an unprecedented rate, primarily driven by ongoing military action overseas, the growth of the U.S. intelligence apparatus, and the maturation of the Federal IT environment.